1. The value of land, goods, or investments when converted into money; the amount of money received from a sale (the proceeds are subject to attachment).
2. Something received upon selling, exchanging, collecting, or otherwise disposing of collateral. UCC § 9-102(a)(64). • Proceeds differ from other types of collateral because they constitute any collateral that has changed in form. For example, if a farmer borrows money and gives the creditor a security interest in the harvest, the harvested wheat is collateral. If the farmer then exchanges the harvest for a tractor, the tractor becomes the proceeds of the wheat. [Cases: Secured Transactions 164. C.J.S. Secured Transactions §§ 113, 115, 117–118.]
net proceeds. The amount received in a transaction minus the costs of the transaction (such as expenses and commissions).
— Also termed net balance.
